Inventory Turnover Calculator
Calculate how efficiently inventory is managed.
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Operations Analytics Suite
Model working capital cycles, cash conversion cycles, and full supply-chain efficiency metrics.
Frequently Asked Questions
What is inventory turnover ratio?
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory. It measures how many times a company sells and replaces its inventory within a period.
What is Days Inventory Outstanding (DIO)?
DIO = 365 ÷ Inventory Turnover. It tells you the average number of days inventory sits before being sold.
Is a higher inventory turnover always better?
Generally yes — it signals strong sales and efficient inventory management. However, an extremely high ratio could indicate insufficient stock levels that risk stockouts.